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Swisscom 9-month Net Profit Down, EBITDA Up; Confirms FY19 View - Quick Facts

Swiss telecommunication services firm Swisscom AG (SWZCF.PK,SCMWY.PK) on Thursday reported that its nine-month net income declined 2.6 percent to 1.18 billion Swiss francs from last year's 1.21 billion francs.

Operating income or EBIT was 1.53 billion francs, down 5.7 percent from the previous year. Operating income before depreciation and amortisation or EBITDA, however, grew 4 percent from last year to 3.36 billion francs.

For the period, Group revenue was 8.46 billion francs, down 2.7 percent from 8.69 billion francs a year ago. At constant exchange rates, revenues decreased 1.9 percent.

In its largely saturated Swiss core business, Swisscom generated revenue of 6.37 billion francs, down 3.3 percent.

The decline in revenue from telecommunications services was mainly the result of falling prices in various segments and the decrease in fixed-line telephony connections.

Looking ahead, Swisscom continues to expect fiscal 2019 net revenue of around 11.4 billion francs and EBITDA of more than 4.3 billion francs.

Subject to achieving its targets, Swisscom will propose payment of an unchanged, attractive dividend of 22 francs per share for the 2019 financial year at the 2020 Annual General Meeting.

Further, the company announced that Marc Werner, Head of Sales & Services and Member of the Group Executive Board, is leaving Swisscom to become CEO of another company.

The Sales & Services or SAS and Products & Marketing or PMK divisions will be merged with effect from January 1. The new Retail Customers division will be headed by Dirk Wierzbitzki, the current Head of PMK.

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